NHC Reports Year End Earnings

NHC Reports Year End Earnings

MURFREESBORO, Tenn.--(BUSINESS WIRE)-- National HealthCare Corporation (NYSE MKT: NHC)(NYSE MKT: NHC.PRA), the nation's oldest publicly traded long-term health care company, today announced net income available to common shareholders of $49,286,000 or $3.56 per share basic for the year ended December 31, 2012, compared to $55,401,000 or $4.02 per share basic for the year ended December 31, 2011, a decrease of 11.0%. Annual operating revenues in 2012 decreased 1.6% from $773,537,000 to $761,262,000.

For comparative purposes, operating expenses for the 2011 year included a favorable result within our accrued risk reserves of $10,500,000 (approximately $6,825,000 after income taxes or $0.50 per common share basic), thus lowering the 2011 expense. Excluding this adjustment, the year ended December 31, 2012 would have reflected an increase of 4.5% in income before taxes and an increase of 1.5% in net income available to common shareholders (after taxes) compared to 2011.


Fourth quarter of 2012 net income available to common shareholders was $12,266,000 or 88 cents per basic share, compared to $12,358,000 or 89 cents per basic share in the fourth quarter of 2011, a decrease of 0.7%. Operating revenues for the fourth quarter of 2012 increased 0.7% from $192,742,000 to $194,043,000.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q and 10-K, and include, among others, the following: liabilities and other claims asserted against us and patient care liabilities, as well as the resolution of current litigation; availability of insurance and assets for indemnification; national and local economic conditions; including their effect on the availability and cost of labor, utilities and materials; the effect of government regulations and changes in regulations governing the healthcare industry, including our compliance with such regulations; changes in Medicare and Medicaid payment levels and methodologies and the application of such methodologies by the government and its fiscal intermediaries, the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations; and other factors referenced or incorporated by reference in the S.E.C. filings. The risks included here are not exhaustive. All forward-looking statements represent NHC's best judgment as of the date of this release.

About NHC

NHC affiliates operate for themselves and third parties 75 long-term health care centers with 9,460 beds. NHC affiliates also operate 37 homecare programs, six independent living centers and 17 assisted living communities. NHC's other services include Alzheimer's units, long-term care pharmacies, hospice, a rehabilitation services company, and providing management and accounting services to third parties. Other information about the company can be found on our web site at www.nhccare.com.

NHC Reports Year End Earnings

Consolidated Statements of Income

(in thousands, except share and per share amounts)

Three Months Ended

Twelve Months Ended

December 31

December 31

Revenues:

2012

2011

2012

2011

Net patient revenues

$

180,175

$

178,958

$

705,386

$

715,489

Other revenues

13,868

13,784

55,876

58,048

Net operating revenues

194,043

192,742

761,262

773,537

Costs and Expenses:

Salaries, wages and benefits

108,906

108,247

426,934

428,672

Other operating

49,420

50,355

198,691

198,439

Facility rent

9,848

9,992

39,355

39,736

Depreciation and amortization

7,624

7,557

29,792

28,901

Interest

110

110

455

443

Total costs and expenses

175,908

176,261

695,227

696,191

Income Before Non-Operating Income

18,135

16,481

66,035

77,346

Non-Operating Income

6,699

5,677

25,245

20,533

Income Before Income Taxes

24,834

22,158

91,280

97,879

Income Tax Provision

(10,400

)

(7,632

)

(33,323

)

(33,807

)

Net Income

14,434

14,526

57,957

64,072

Dividends to Preferred Stockholders

(2,168

)

(2,168

)

(8,671

)

(8,671

)

Net Income Available to Common Stockholders

$

12,266

$

12,358

$

49,286

$

55,401

Earnings Per Common Share

Basic

$

0.88

$

0.89

$

3.56

$

4.02

Diluted

$

0.87

$

0.88

$

3.49

$

3.90

Weighted average common shares outstanding

Basic

13,872,472

13,811,852

13,852,709

13,774,628

Diluted

14,034,532

16,442,767

16,598,816

16,414,023

Balance Sheet Data

(in thousands)

Dec. 31

Dec. 31

2012

2011

Cash and marketable securities

$

173,951

$

146,059

Restricted cash and marketable securities

146,770

134,212

Current assets

414,979

368,198

Property and equipment, net

420,907

429,651

Total assets

920,181

870,424

Current liabilities

226,495

220,659

Long-term debt

10,000

10,000

Stockholders' equity

659,672

611,736

NHC Reports Year End Earnings

Selected Operating Statistics

Three Months Ended

Twelve Months Ended

December 31

December 31

2012

2011

2012

2011

Per Diems:

Medicare

$

434.47

$

427.45

$

430.13

$

452.32

Managed Care

$

408.76

$

400.80

$

408.22

$

415.03

Medicaid

$

165.68

$

158.31

$

159.65

$

157.48

Private Pay and Other

$

192.95

$

183.49

$

192.42

$

185.96

Patient Days:

Medicare

118,006

115,000

478,767

466,325

Managed Care

33,387

27,899

124,801

106,489

Medicaid

270,200

287,798

1,088,944

1,139,880

Private Pay and Other

151,004

153,439

599,966

606,975

572,597

584,136

2,292,478

2,319,669

Average Per Diem

$

242.44

$

229.49

$

238.25

$

236.03



National HealthCare Corporation
Gerald Coggin, 615-890-2020
Sr. VP of Corporate Relations

KEYWORDS: United States North America Tennessee

INDUSTRY KEYWORDS:

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